Patients will see relief in their medical bills from September 22, 2025, when the revised Goods and Services Tax (GST) rates on medicines and medical devices come into effect. The Central Board of Indirect Taxes and Customs (CBIC) has clarified that existing stocks already in circulation will not need to be recalled or re-labelled before the change.
Concerns had been raised by consumers, chemists and manufacturers over the possible confusion caused by old Maximum Retail Prices (MRPs) on medicine packs. The CBIC has now confirmed that companies will not be asked to recall products or affix fresh labels. Instead, the National Pharmaceutical Pricing Authority (NPPA) has directed all drug manufacturers and marketing firms to revise their MRPs in line with the new tax rates.
According to the CBIC, companies will issue revised or supplementary price lists to dealers and retailers. These updated lists must be displayed at pharmacies and retail outlets so customers can verify the correct prices. Copies will also be shared with State Drug Controllers and central authorities for oversight.
The system ensures that patients will not end up paying the higher rates printed on older packs. Even if the packaging carries the outdated MRP, the billing at the counter will show the reduced, GST-adjusted price.
The CBIC has placed the responsibility of compliance squarely on manufacturers and marketing companies. They must make sure retailers implement the revised prices and pass on the benefit to consumers.
From September 22, customers buying medicines need not worry about outdated labels. The reduced GST rates will automatically apply during purchase, lowering household medical expenses without disrupting the supply chain.